Matinas BioPharma amends bylaws, updates on officer agreements

Published 02/05/2025, 22:30
Matinas BioPharma amends bylaws, updates on officer agreements

Matinas BioPharma (NYSE:MTNB) Holdings, Inc. (NYSE American:MTNB), a pharmaceutical company with a market capitalization of $3.1 million and currently trading at $0.61 per share, announced on Monday significant corporate updates through a recent SEC filing. According to InvestingPro analysis, the company maintains a weak financial health score of 1.74, though it holds more cash than debt on its balance sheet. The company’s Board of Directors has approved an amendment to its bylaws that changes the quorum requirement for shareholder meetings. Previously, a majority of the voting power was necessary to constitute a quorum; now, one-third of the voting power will suffice. This amendment aims to facilitate the convening of shareholder meetings. The governance changes come as the stock has experienced a significant 93.24% decline over the past year, with InvestingPro data showing the company is currently trading below its Fair Value.

In addition to the bylaw changes, the Board has also amended employment agreements with key executives to include retention bonuses tied to potential changes in control of the company. Jerome D. Jabbour, the CEO, and Keith Kucinski, the CFO, will now be eligible for a cash retention bonus if a change in control occurs before March 31, 2026. These retention measures come as the company maintains a healthy current ratio of 3.01, indicating strong ability to meet short-term obligations, despite not being profitable over the last twelve months. The bonus will be the greater of the target annual bonus for the fiscal year in which the change in control occurs or a set dollar amount specific to each agreement.

Furthermore, the company has set the date for its 2025 Annual Meeting of Stockholders for June 23, 2025, with May 1, 2025, as the record date for determining stockholders entitled to notice and vote. The company has also established May 12, 2025, as the deadline for receiving stockholder proposals and nominations for the election to the Board for the upcoming annual meeting. Investors should note that the company’s next earnings report is scheduled for May 8, 2025, just ahead of the proposal deadline. Get deeper insights into MTNB’s financial health and future prospects with a comprehensive Pro Research Report, available exclusively on InvestingPro.

These updates are detailed in the company’s recent Form 8-K filing with the Securities and Exchange Commission. The filing includes the full text of the bylaw amendment and the amendments to the employment agreements of the CEO and CFO. These documents provide shareholders and investors with important information about the company’s governance and executive compensation arrangements.

The announcement of these corporate actions reflects Matinas BioPharma’s efforts to ensure that its governance practices are aligned with the company’s objectives and the interests of its shareholders. The changes to the quorum requirements and the inclusion of retention bonuses for key officers could be significant for the company’s future operations and governance.

In other recent news, Matinas BioPharma Holdings, Inc. held a Special Meeting where shareholders approved several key proposals, including the issuance of up to 16,894,212 shares of common stock, with 88% voting in favor. This approval is in compliance with NYSE American LLC guidelines and may result in a "Change of Control." Additionally, 95% of shareholders ratified the appointment of EisnerAmper LLP as the independent auditor for the fiscal year ending December 31, 2025. In governance updates, Eric Ende resigned as chairman of the Board of Directors due to other professional commitments, with no successor announced yet. Separately, board member Herbert Conrad retired, effective February 6, 2025, with no immediate changes to the board’s composition reported. These developments were disclosed through the company’s filings with the Securities and Exchange Commission. Matinas BioPharma has not indicated any immediate impact on its strategic direction due to these changes. Investors will likely monitor how these governance shifts influence the company’s future activities.

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